Thanks to MSNBC.Com, we can view CNBC's Trish Regan's report on Investors need for financial security, and thus, "pouring money into T-Bills" or Treasury Securities (US Government Bonds), even at 0% interest rate.
This is as good as putting "Money under the Mattress" because there is no return on investment. Of course, in this case, investors think that money in the hands of the US Government is safer than the mattress!
What is interesting, and somewhat disturbing is that even after a US$300 billion backstop, and hundreds of billions of dollars poured by Treasury Secretary Hank Paulson into the financial institutions, investors, presumably categorized as "sophisticated investors", i.e. those with investible assets (excluding domicile property) of over US$2 million, are thinking that it is better not to earn interest than to earn 2% with Citigroup, or JP Morgan or Bank of America.
Is there something these people know that we don't? Or is it mere Extreme Fear"? If the rich is so fearful, are you?
Best wishes,
Ooi
This is as good as putting "Money under the Mattress" because there is no return on investment. Of course, in this case, investors think that money in the hands of the US Government is safer than the mattress!
What is interesting, and somewhat disturbing is that even after a US$300 billion backstop, and hundreds of billions of dollars poured by Treasury Secretary Hank Paulson into the financial institutions, investors, presumably categorized as "sophisticated investors", i.e. those with investible assets (excluding domicile property) of over US$2 million, are thinking that it is better not to earn interest than to earn 2% with Citigroup, or JP Morgan or Bank of America.
Is there something these people know that we don't? Or is it mere Extreme Fear"? If the rich is so fearful, are you?
Best wishes,
Ooi
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